Futures are pointing to a green start, after the S&P fell over 3% last week as the Fed remained on pace for more rate hikes. Asia markets rallied overnight while Europe indexes are mostly higher this morning. The US dollar, Yields, and Oil are lower while Gold is higher.
And this is what UPB is reading this morning: https://www.optionmillionaires.com/morning-reads-135/
Last week was rough one for stocks as they gave back all the gains from the previous week, as the Fed remained on its hawkish course and looks poised to raise rates again in December. The next few days could go a long way in determining if markets have found a bottom or the previous two week rally was just a relief bounce. There are still plenty of earnings on tap and we get the October CPI data on Thursday. Most of the large cap names have reported already so earnings this week will be less of a market mover while that CPI number will certainly cause some swings. Another hot numbers and would think markets would be pressured. Would bode well if we can reclaim that 50dma at $379 in the next day or two:
Also, here are the implied moves for companies reporting this week:
ZYME broke out on Friday, staging a late afternoon rally that saw it close above the key $7.75 handle. Would like to see it break into the $8s today. Will be looking to close some of my calls out to cover costs and ride the rest for a possible move to $10 or so in the next week or two:
It was a rough two sessions for TNDM as the company reported weaker than expected earnings and guidance. Thankfully won't have to stare at my calls longer then Friday and likely a name I will take off the watch list for now:
WING has been churning since its earnings gap and could be set for new highs soon. May look to add some calls to play for a move back into the $160s and possible $170s in the coming days. As I have mentioned before, think these casual dining names will benefit when inflation gets reigned in and the market will likely price that in before it happens... which could be now:
DPZ is another name that could continue to benefit. Could see a move back near its 200dma at $378 in the coming days. May look to add some calls to play for that move:
I was able to play ROKU calls fo some nice profits on a bounce on Thursday. I think at some point the M&A chatter will pick up again. Will be on watch again this week for some potential bounce calls:
TWLO was decimated last week after pulling its revenue guidance. Likely another name I will be taking off my watchlist for now.
U reports Wednesday after the close... a name I will be watching.
Here are the analyst changes of note for today:
|Peloton price target lowered to $18 from $23 at Citi|
|Citi analyst Ronald Josey lowered the firm's price target on Peloton to $18 from $23 and keeps a Buy rating on the shares post the fiscal Q1 results. The analyst says that while it remains relatively early-days in Peloton's turnaround, he's encouraged with improving monthly churn of 1.2% in the quarter. This suggests that engagement remains relatively healthy overall, Josey tells investors in a research note. However, Peloton's Q2 guidance for subscribers and revenues came in below expectations, implying a more muted holiday sales outlook than expected, adds the analyst|
|ShockWave Medical price target raised to $310 from $260 at BofA|
|BofA analyst Travis Steed raised the firm's price target on ShockWave Medical to $310 from $260 and keeps a Buy rating on the shares. Steed sees another strong quarter for ShockWave, and thinks it could reach peak margins by the end of 2023, the analyst tells investors in a research note. He sees a nice set up for 2023 with U.S. coronary driving the most incremental dollar growth, and thinks ShockWave can continue to move into new disease states longer-term with non-arterial applications coming in the 2026+ timefram|
PayPal price target lowered to $110 from $120 at DA Davidson
|DA Davidson analyst Christopher Brendler lowered the firm's price target on PayPal to $110 from $120 but keeps a Buy rating on the shares. The company's Q3 results were a "step back" following an encouraging performance in Q2 as several key underlying metrics deteriorated, the analyst tells investors in a research note. Brendler adds however that PayPal has "made real progress" on expenses and "credit looks great", with buy-now-pay-later business outperforming|
DoorDash price target lowered to $60 from $82 at DA Davidson
|DA Davidson analyst Tom White lowered the firm's price target on DoorDash to $60 from $82 and keeps a Neutral rating on the shares. The company's Q3 results were "strong" and its execution against an uncertain pandemic re-opening and macro backdrop continues to be impressive, the analyst tells investors in a research note. White adds however that his reduced price target reflects DoorDash's broad recent multiple compression on high-growth Technology stocks.|
Virgin Galactic price target lowered to $11 from $14 at Jefferies
|Jefferies analyst Greg Konrad lowered the firm's price target on Virgin Galactic to $11 from $14 and keeps a Buy rating on the shares. After the company's Q3 report, he notes that schedules have stabilized with plans for the first commercial spaceflight "holding steady" at Q2 2023. However, a delay in VSS Imagine "dampens the intermediate outlook," Konrad tells investors in a post-earnings research note|
DraftKings price target lowered to $21 from $30 at Craig-Hallum
|Craig-Hallum analyst Ryan Sigdahl lowered the firm's price target on DraftKings to $21 from $30 on a more challenging near-term stock setup, while keeping a Buy rating on the shares. The analyst notes that while scaled peers are showing material improvements in operating leverage with several inflecting to positive EBITDA, DraftKings continues to lean into spend. He has confidence in the company's competitive advantages and market opportunity, and thinks peers are demonstrating how quick the switch can be turned on from losses to profitability standpoint|
And here is what I am watching today: DPZ, WING, ZYME, ROKU, U, SPOT, ISRG, AXNX, HUM, CI, PZZA, and CMG.
Let's have a great day!